1. Every asset - liquid or illiquid - should be bought, retained and sold for fulfilling a need; hence all resource allocation should be need-based for long-term wealth creation, by conducting due diligence.
2. For this, ask yourself questions like "why to buy", "when to buy", "how to buy", "what to buy", "where to buy", "whom to buy from", "how much to buy", "how much to earn from it", "how will it be taxed", etc.
3. Similarly, you should be prepared with answers for "why to sell", "when to sell", "how to sell", "what to sell", "where" to sell", "whom to sell", "how much to sell for", "how much to earn from it","how will it be taxed", etc.
4. This self-discipline exercise would itself solve all puzzles in the mind related to that need.
5. For buying real estate, only one carefully and adequately chosen house for actually living in it (aiming for 15 plus years of your lifespan) would pass true muster in this self-discipline exercise.
6. For any other real estate, residential, commercial or land, the risk-return trade off would always follow demand-supply equations (including perceptions) like all other investments, although their market cycles do vary considerably to defy any objective comparison for deciding favourable entry and exit points convincingly.
7. Therefore, if you want to "invest" in additional real estate for fulfilling other needs, you should do all the due diligence which you would have done for acquiring any other asset.
2. For this, ask yourself questions like "why to buy", "when to buy", "how to buy", "what to buy", "where to buy", "whom to buy from", "how much to buy", "how much to earn from it", "how will it be taxed", etc.
3. Similarly, you should be prepared with answers for "why to sell", "when to sell", "how to sell", "what to sell", "where" to sell", "whom to sell", "how much to sell for", "how much to earn from it","how will it be taxed", etc.
4. This self-discipline exercise would itself solve all puzzles in the mind related to that need.
5. For buying real estate, only one carefully and adequately chosen house for actually living in it (aiming for 15 plus years of your lifespan) would pass true muster in this self-discipline exercise.
6. For any other real estate, residential, commercial or land, the risk-return trade off would always follow demand-supply equations (including perceptions) like all other investments, although their market cycles do vary considerably to defy any objective comparison for deciding favourable entry and exit points convincingly.
7. Therefore, if you want to "invest" in additional real estate for fulfilling other needs, you should do all the due diligence which you would have done for acquiring any other asset.